| Wed 24 Jun 2009, 9:03 | | RMH - RMBH - Trading statement in respect of financial year ended 30 June 2009 |
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RMH
RMH
RMH - RMBH - Trading statement in respect of financial year ended 30 June 2009
RMB HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1987/005115/06)
ISIN: ZAE000024501
Share Code: RMH
(`RMBH` or `the Company`)
TRADING STATEMENT IN RESPECT OF FINANCIAL YEAR ENDED 30 JUNE 2009
Shareholders are referred to the trading statement issued yesterday by the
Company`s associate, FirstRand Limited ("FirstRand") on SENS and at
www.firstrand.co.za.
In that announcement FirstRand highlighted to its shareholders that the macro
environment, both domestically and globally, played out more negatively than
the FirstRand Group had anticipated, with:
- Declining asset growth and further increases in bad debts, combined with
the impact of faster than anticipated reducing interest rates on capital and
endowment balances, continuing to place pressure on the earnings of its retail
banking franchises (FNB and WesBank). In these areas it anticipates that
economic activity will remain subdued, with reducing interest rates only
expected to positively impact Group results in late 2009 or early 2010.
- The earnings from RMB (its investment banking franchise) have come under
significant pressure in the second half of the financial year with further
losses being incurred as a result of volatility in its international
portfolios; a lack of Private Equity realisations; and its Fixed Income,
Currencies and Commodities (FICC) business experiencing counterparty credit
related impairments and losses in the fixed income trading and international
lending portfolios offsetting strong sales and structuring income in its
client facing businesses. Despite significantly lower corporate activity,
RMB`s Investment Banking division continued to perform well. Overall, RMB`s
earnings for the year are expected to be approximately half of that of the
prior year.
- Assurance group Momentum`s performance in the second half of the
financial year was similar to the first half.
Given the outcomes described above and barring any unforeseen negative market
developments, the FirstRand Group has informed its shareholders that it is
reasonably certain that earnings expectations for the financial year to June
2009 relative to the prior year will be as follows:
Earnings guidance for
the year to June 2009
Earnings per share -39% to -44%
Headline earnings per share -28% to -33%
Diluted pro-forma normalised -30% to -35%
earnings per share
As its investment in FirstRand produces the bulk of RMBH`s earnings, it is
anticipated that the impact outlined in FirstRand`s trading statement will, to
a large extent, flow through into RMBH`s results for the year ended 30 June
2009.
RMBH therefore advises shareholders that it now expects that for the financial
year to 30 June 2009, Earnings, Headline Earnings and Normalised Earnings are
expected to be lower than the previous year, to a similar extent to that
indicated by FirstRand.
In the year to 30 June 2008, RMBH reported Earnings of R4 122 million (345.9
cps), Headline Earnings R 3 714 million (311.7 cps) and Normalized Earnings of
R 3 577 million (297.5 cps).
The financial information on which this trading update is based has not been
reviewed or reported on by the Company`s external auditors.
Details of RMBH`s results for the financial year ending on 30 June 2009 are
expected to be released on SENS and published in the press on or about 16
September 2009.
Sandton
24 June 2009
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 24/06/2009 09:03:01 Produced by the JSE SENS Department.
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